MKT 201 CH. 8 Using Marketing Channels to Create Value for Customers

A pull strategy utilizes customers to convince businesses to sell a product
Consumers are informed via advertising and other promotions that a product is available for sale in a push strategy.
A product’s supply chain includes transportation companies such as railroads.
The lines between retailers, wholesalers, and producers are very easy to distinguish.
Wholesalers resell goods to other companies without transforming the goods.
The Internet has fueled a certain amount of disintermediation.
The Internet is the best channel for every product
A company’s prime consideration while selecting channels is how its customers want to buy products.
The Internet is hindering companies’ ability to develop customer relationships.
Cutting middlemen out of the channel is known as:
Distribution channel
All of the people and organizations that buy, resell, and promote a product ” downstream” as it makes it to the end user is referred to as the _____.
_____ are characterized by selling products at a discount to people who pay an annual membership fee to join them.
Frank needs to buy groceries, get a haircut, and stop for lunch. He could accomplish all these things under the same roof if he were to visit a(n) _____.
direct foreign investment
Acquiring part or all of a foreign company is a common strategy for companies known as _____.
A(n) _____ is formed when two parties agree to share their profits, losses, and control with one another in an economic activity they jointly undertake.
Which of the following is the least risky global entry strategy?
Push strategy
A strategy utilized by the manufacturer of a good that convinces the wholesaler, distributor, or retailer to sell its products is known as a(n):
Intensive Distribution
_____ is a strategy of selling a product in as many outlets as possible.
_____ involves selling products through one or very few outlets.
_____ is the ability to influence a channel partner’s goals and efforts.
channel members have their own goals.
Channel conflicts occur because:
The firms that a company partners with to actively promote and sell a product as it travels through its marketing channel to users are referred to by the firm as its _____.
the producer needs shipping and handling capabilities
A company may partner with intermediaries because:
Organizations that are involved in the process of producing, promoting, and delivering company products to its user but are not active participants in selling of the products are referred to as _____.
limited-service wholesalers
Cash-and-carry wholesalers are an example of _____.
_____ sell specialty products that they display on their own racks in stores.
Mary ran into a store dedicated to the newest cat foods offered by her favorite pet food provider. She had so much fun interacting with the free samples and toys, she decided to bring her cat Fluffy to the store the next week, but it was no longer there. Mary most likely found a _____.
_____ are characterized as having a wide variety of household and personal types of merchandise such as clothing and jewelry.
Industrial Distributors
_____ are intermediary firms that sell products that businesses or government departments and agencies use but don’t resell.
Pull strategy
A _____ focuses on communicating the product’s benefits to the consumer so as to create demand that retailers and distributors must meet.
Pushing strategy
Alex is providing special incentives to the employees at a gourmet food shop in hopes that they recommend his company’s cheese to customers. Alex is utilizing a(n) _____.
retailers; purchasing agents; consumers.
Often, two or more channel members will work together to promote a product to:
wholesalers; distributors
One of the functions of _____ and _____ is to break large quantities of products down into smaller units.
perishable products
Products that are typically more likely to have a shorter marketing channel include
consumers purchase on the spot without much shopping around.
Intensive distribution is utilized for products that:
prevent a company’s brand from deteriorating.
Distributing a product exclusively to a limited number of organizations under strict terms can help
A _____ is a market where unauthorized goods are sold without the knowledge of the producers.
_____ are products retailers produce themselves.
Vertical conflict
Pat’s dairy company has a conflict with Ron’s grocery store. This is an example of
Horizontal conflict
A _____ occurs between organizations of the same type.
_____ is the practice of selling a large quantity of goods at a price too low to be economically justifiable in another country.
educating channel members’ sales representatives about your product.
An ethical and effective strategy utilized to gain channel member cooperation is:
vertical marketing system
A(n) _____ involves channel members formally agreeing to closely cooperate with one another.
Horizontal marketing system
A _____ involves two companies at the same channel level agreeing to cooperate with each other to sell their products.
How companies sell is just as important as what they sell.
The simplest marketing channel consists of just three parties.
Companies strive to choose not only the best marketing channels, but the best channel partners.
Brokers take title to the products they sell.
A category killer is a type of specialty store that sells a high volume of a particular product.
Outlet stores are oversized department stores that carry a broad array of general merchandise as well as groceries.
Door-to-door sales and telemarketing are examples of direct marketing.
A direct channel consists of only a producer and a consumer.
The producer does not market directly to consumers when it is involved in an indirect channel.
A marketing channel offers little scope to companies to set itself apart from the crowd.
When creating a marketing channel, the key is to understand the different target markets for your product and designing the best channel to meet the needs of customers in each.
Disintermediation involves granting an independent operator the right to use your manufacturing processes, trade secrets, patents, and trademarks for a certain amount of time in exchange for a fee.
Different organizations in a marketing channel are responsible for different value-adding activities.
A push strategy primarily involves creating consumer demand.
The clout of the various organizations in its marketing channel can affect the contract terms.
The problem with a pull strategy is that it doesn’t focus on the needs of the actual user of products.
Selecting the best marketing channel is critical because it can mean the success or failure of your product
Designer clothes and sunglasses are examples of products that typically utilize an intensive distribution strategy.
A channel member with strong channel powers is known as a channel captain.
Channel conflicts are atypical.
Contracts typically take care of all channel conflicts.
Stuffing the channel occurs when a company offers its channel partners deep discounts and unlimited returns to buy a lot of product.
Horizontal integration is an agreement formed by two or more firms to deliver their products via a channel.